EPF should build homes, not finance them...

The Malaysian Trades Union Congress (MTUC) slammed today Putrajaya’s plans to use RM1.5 billion from the Employees Provident Fund (EPF) to give home loans to unqualified buyers, insisting the “giant institution” was capable of developing housing projects on its own.

The umbrella body, which represents 802,323 workers from 390 labour unions, pointed to EPF’s RM10 billion development of 1,085 hectares of Malaysian Rubber Board (MRB) land in Sungai Buloh as an example of projects the retirement fund should be pursuing.

“Instead of just being a financer or partner, EPF should lead and develop projects on its own to gain better returns for its 5.7 million active members,” said MTUC secretary general Abdul Halim Mansor told The Malaysian Insider.

He added that EPF could develop housing projects to provide homes for workers, estimating that half of EPF’s active contributors still did not own a home.

The government was forced yesterday to allay fears that the housing loan scheme for those who cannot qualify for commercial financing would result in losses for EPF.

Federal Territories and Urban Well-being Minister Raja Datuk Nong Chik Raja Zainal Abidin said the loan was secure as it is guaranteed by the Kuala Lumpur City Hall (DBKL), a government agency.


Under the scheme, applicants will receive a 100 per cent loan, with a repayment period of up to 25 years to allow loan borrowers to make “smaller” monthly repayments.


But the opposition has raised doubts over the minister’s assurances, stating that with such a guarantee, banks would be rushing to provide the loans instead of shying away.

Under the deal, the EPF earns 5.5 per cent interest per annum in repayments made by every home owner. But Abdul Halim pointed out today that 5.5 per cent was below the normal rate of return for EPF, which dished out 5.65 and 5.8 per cent dividends in the last two years.

“You can even deposit in a bank and get maybe less 1 per cent but it is far less risky than giving it out as loans to underqualified homeowners.

“EPF should be seeking out better returns with more aggressive investments rather than just playing a secondary role,” he said. 

source:malaysian insider

Bank ada undang2 untuk bertindak secara undang2 ke atas 'non-performing loans' bagi mendapatkan balik duit pinjaman mereka. EPF ada undang2 apa yang nak digunakan untuk mendapatkan hutang2 yang tak dibayar balik?

Jawabnya pakat leburlah duit EPF yang telah digunakan itu...

cheers.